Home BuyerThe Gap Has Not NarrowedMonday, July 26th, 2010A year ago, I wrote that “there has never been a bigger gap between a buyer and seller than what we seeing in the current market place.” I wish I could report that a year later, the gap has closed significantly, but it hasn’t. In some respects, it even got worse because in the lower price ranges, it has become a sellers’ market and they are looking to turn the tables on buyers. I am not sure what it is; maybe the strain of the economy keeps everyone in a foul mood but it seems that one transaction after another pits the buyer against the seller in an adversarial war. The simple fact is that the seller distrusts and doesn’t like the buyer, and the buyer distrusts and doesn’t like the seller. As the agent, we are stuck in the middle, attempting to be the peace maker or referee between the two sides. Let’s just assume for a moment that we can get a buyer and seller together on price and it’s under contract. One would think that the acrimony would end there, but really, it’s just the beginning. Next comes the inspection where they argue, haggle over inspection items or even the wordings of the inspection objection. My all-time favorite is a fight between the buyer and seller about matching sink stoppers in the master bath. Discussions, emails, and endless phone calls on why there are not two garage door openers or fights over $200 dollars. Why? So the buyer or seller can say or feel like they won the battle and other guy lost. This is not about winning and losing and or how much you can stick it to the other guy. I am not naïve. I understand that we are living in an opportunistic time period, but is it possible to do it with civility, respect, and without all the acrimony? I was talking to some of fellow colleague in preparation for this topic to find out if they were experience the same enormous discord between their buyers and sellers. Everyone to a man and woman said yes, but some told me not write this column because it would go through one ear and out the other. Maybe they are right and no one will pay attention to this column and it will be business as usual. I hope not. Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
The Summer Selling Season Is Coming To An EndMonday, July 19th, 2010It’s the end of the July and in a few short weeks the summer real estate season will begin to slow down. Right around the second week of August, things begin to slow down as parent and children try to sneak in one more vacation before school starts. Then once school kicks in and people get back into their normal routines, real estate will pick up again. If you’re a seller, don’t be surprised if you see a dip in your showings between the second week of August and the second week of September. The question for buyers is: did you take advantage of the historically low prices and low interest rates this summer? Here are a few things I saw this season: 1) Unbelievably low prices. I am going to go out on a limb and I’ll eat my words if I wrong, but I think it’s safe to say that values have never been this low and we may never see this again. 50% off some homes is not part of a regular 10-year real estate cycle. This happens once in a lifetime. 2) Sellers in the 200-400 price range turned the tables on buyers. Sellers understood that the bottom of the market had come and gone, they stayed firm on their prices, and in most cases got full asking price. 3) Lower than normal inventory. The words “I can’t find a home for my buyers” was spoken by more Realtors this past summer than in the last three years. 4) Mistakes, Mistakes, Mistakes. More than one buyer decided to do nothing rather than make a decision this past summer thinking that the home would still be on the market whenever they were ready. Those buyers were disappointed to find out that their number one choice had sold. That trend of “I don’t have to make a decision today, tomorrow or in a month” is quickly coming to an end for buyers. The good news is I think we are poised for good fall. It was fall of last year when we first began to notice the turnaround in the economy. Right around September, showings started to pick up and we had one of our best fall’s selling seasons in some time. I expect the same to be true for this year. The fall selling season goes from mid-September through mid-November. Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached atDPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Can you still get a mortgage?Tuesday, June 22nd, 2010You do not have to be Bill Gates to get a mortgage, however, mortgage requirements have tightened up considerably. Unless you are a vet applying for a VA mortgage, 100% financing is gone. Stated income programs, programs where income was not verified, have gone the way of dollar a gallon gasoline. It might come back someday, but I would not count on it. Factors that lenders focus on include: income to debt ratios, stability of income, down payment, and credit scores. While these guidelines have been tightened up significantly people are still getting mortgages to purchase or refinance. FHA is the most flexible of current mortgage programs. You may still purchase a home with a down payment of 3.5% of the purchase price. FHA is also more lenient on credit scores, and other requirements, such as reserves. Reserves are the cash or other liquid assets a buyer has after the closing. If you have been turned down for a mortgage, find out why. The problem may be fixable with a little work, or it could be you have an incompetent lender. It never hurts to get a second opinion. Next week: Divorce mortgages Chip Allen Crestline Mortgage Bankers A Division of Universal Lending Corp Direct: 303.947.2109 Fax: 303.987.0676 Your Lender for Life!
|
